Strategic Compensation

Topics: Strategic management, Strategic planning, Strategy Pages: 6 (2141 words) Published: December 13, 2010
Write a 1200-1500 word paper that describes a strategic compensation plan for machine operators at Plastec Company. Refer to the description from the week 3 assignment. Include at least 3 referenced articles and cite them as appropriate. This paper should at a minimum address the following: * What should Paul do to determine how Plastec compares with other area employers in terms of wages and benefits? * How could Plastec motivate its machine operators to stay? To increase their productivity? * The majority of the machine operators are in their mid to late forties, some with families, some without. What types of benefits would you suggest offering? Please submit your learning team paper: Strategic compensation here.  Note this and all papers in this course should use APA format.  This Powerpoint file on APA gives a brief overview. Please submit your assignment in Microsoft Word. If you are using Word for Vista (.docx file extension), be sure your instructor is able to view this file type. If your instructor is not able to view .docx files, save your paper as a .doc file. If you are not certain how to do this, contact the Help Desk. Please include your team members’ names on the first page of your paper for the grading purposes. Recently orders have been much slower due to a recent downturn in the overall economy, and there have been a few layoffs. Paul was directed by the owners to “keep good workers who will stay” and to “keep us out of court.” The company has a single location which is in an industrial park outside a major metropolitan area. Until recently turnover was very high although Paul had been able to reduce it some since he arrived. Right now there are a couple of openings in several job classifications. Although hiring is limited at the present time, the owners expect business to pick up soon. When it does, Paul needs to be ready to hire additional workers.
Before Paul’s arrival, department managers did their own hiring. Since he arrived, Paul has gradually taken on more of the tasks associated with hiring, and the managers have been ok with this. The main job classification with openings is for machine operator. This is a semi-skilled job. While some English is required in order to communicate with the supervisor and to understand safety standards, the actual job itself is very routine and does not require much communication with other people. Paul’s initial review of existing position descriptions led him to conclude that most of the entry level position descriptions were up-to-date, but the management positions were quite outdated because the education requirements were just a high school diploma or GED, and no skill requirements were listed.


Today there is a lot of talk about compensation, its cost to the organization and the company's return on its compensation investment. As a result, a variety of new pay systems have been developed, each with its own objectives, benefits and risks. Some companies have already installed new pay plans, and many more are considering it. Many companies that have implemented various new Pay Plans find that plan objectives become disconnected from the larger picture; they have been designed with a local rather than a global view. These companies are looking for a way to integrate their pay systems into a cohesive whole so the plans drive the company objectives. Other companies are beginning to look at new plans, wondering how these plans will fit into the current pay system. Often, there is little connection between the new pay systems and the overall business plan of the organization. New pay systems are designed to achieve specific, departmental objectives or, worse, they are because "everybody is doing it." The traditional function of pay to attract, retain and motivate employees has not changed with the introduction of new pay systems; but the emphasis has shifted from the attraction and retention functions to the motivation...
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